diff --git a/sleap_nn/data/instance_centroids.py b/sleap_nn/data/instance_centroids.py
new file mode 100644
index 00000000..17f87d91
--- /dev/null
+++ b/sleap_nn/data/instance_centroids.py
@@ -0,0 +1,64 @@
+"""Handle calculation of instance centroids."""
+import torchdata.datapipes.iter as dp
+import lightning.pytorch as pl
+from typing import Optional
+import sleap_io as sio
+import numpy as np
+import torch
+
+
+def find_points_bbox_midpoint(points: torch.Tensor) -> torch.Tensor:
+    """Find the midpoint of the bounding box of a set of points.
+
+    Args:
+        instances: A torch.Tensor of dtype torch.float32 and of shape (..., n_points, 2),
+            i.e., rank >= 2.
+
+    Returns:
+        The midpoints between the bounds of each set of points. The output will be of
+        shape (..., 2), reducing the rank of the input by 1. NaNs will be ignored in the
+        calculation.
+
+    Notes:
+        The midpoint is calculated as:
+            xy_mid = xy_min + ((xy_max - xy_min) / 2)
+                   = ((2 * xy_min) / 2) + ((xy_max - xy_min) / 2)
+                   = (2 * xy_min + xy_max - xy_min) / 2
+                   = (xy_min + xy_max) / 2
+    """
+    pts_min = torch.min(torch.where(torch.isnan(points), np.inf, points), dim=-2).values
+    pts_max = torch.max(
+        torch.where(torch.isnan(points), -np.inf, points), dim=-2
+    ).values
+
+    return (pts_max + pts_min) * 0.5
+
+
+class InstanceCentroidFinder(dp.IterDataPipe):
+    """Datapipe for finding centroids of instances.
+
+    This DataPipe will produce examples that have been containing a 'centroid' key.
+
+    Attributes:
+        source_dp: the previous `DataPipe` with samples that contain an `instance`
+    """
+
+    def __init__(
+        self,
+        source_dp: dp.IterDataPipe,
+    ):
+        """Initialize InstanceCentroidFinder with the source `DataPipe."""
+        self.source_dp = source_dp
+
+    def __iter__(self):
+        """Add 'centroid' key to sample."""
+
+        def find_centroids(sample):
+            mid_pts = find_points_bbox_midpoint(sample["instance"])
+            sample["centroid"] = mid_pts
+
+            return sample
+
+        for sample in self.source_dp:
+            find_centroids(sample)
+            yield sample
diff --git a/sleap_nn/data/providers.py b/sleap_nn/data/providers.py
index 847ade91..6bf0fa6c 100644
--- a/sleap_nn/data/providers.py
+++ b/sleap_nn/data/providers.py
@@ -29,11 +29,11 @@ def from_filename(cls, filename: str):
     def __iter__(self):
         """Return a sample containing the following elements.
 
-        - a torch.Tensor representing an instance
-        - a torch.Tensor representing the corresponding image
+        "image": a torch.Tensor containing full raw frame image.
+        "instance": A single instance of the corresponding image.
         """
         for lf in self.labels:
             for inst in lf:
                 instance = torch.from_numpy(inst.numpy())
                 image = torch.from_numpy(lf.image)
-                yield instance, image
+                yield {"image": image, "instance": instance}
diff --git a/tests/test_instance_centroids.py b/tests/test_instance_centroids.py
new file mode 100644
index 00000000..8f706c9d
--- /dev/null
+++ b/tests/test_instance_centroids.py
@@ -0,0 +1,21 @@
+from sleap_nn.data.providers import LabelsReader
+import torch
+from sleap_nn.data.instance_centroids import (
+    InstanceCentroidFinder,
+    find_points_bbox_midpoint,
+)
+
+
+def test_instance_centroids(minimal_instance):
+    """Test InstanceCentroidFinder
+
+    Args:
+        minimal_instance: minimal_instance testing fixture
+    """
+    datapipe = LabelsReader.from_filename(minimal_instance)
+    datapipe = InstanceCentroidFinder(datapipe)
+    sample = next(iter(datapipe))
+    centroid = sample["centroid"]
+    centroid = centroid.int()
+    gt = torch.Tensor([122, 180]).int()
+    assert torch.equal(centroid, gt)
diff --git a/tests/test_providers.py b/tests/test_providers.py
index 8a40ebbc..4113b664 100644
--- a/tests/test_providers.py
+++ b/tests/test_providers.py
@@ -5,12 +5,13 @@
 
 
 def test_providers(minimal_instance):
-    """Test sleap dataset
+    """Test LabelsReader
 
     Args:
         minimal_instance: minimal_instance testing fixture
     """
     l = LabelsReader.from_filename(minimal_instance)
-    instance, image = next(iter(l))
+    sample = next(iter(l))
+    instance, image = sample["instance"], sample["image"]
     assert image.shape == torch.Size([384, 384, 1])
     assert instance.shape == torch.Size([2, 2])